A rejection in 85% of cases — and why
Every year, thousands of financing applications are submitted to Cameroonian and sub-regional banks. Fewer than 15% obtain an agreement in principle within 90 days. The rest are rejected, put on indefinite hold, or returned for "additional documents". Behind these figures lies a reality often overlooked by project owners: a bank's refusal is almost never due to the substance of the project, but to how it is presented and how the risk is laid out before the credit committee.
The financeability diagnosis is the fundamental tool for identifying — before any approach to a financial institution — the strengths and weaknesses of an application. It avoids wasting precious shots with bankers who, once an application has been rejected, will long retain a negative memory of the project owner.
The 5 criteria a bank systematically assesses
1. Repayment capacity
This is the cardinal criterion. The debt service coverage ratio (DSCR) measures a project's ability to generate enough cash to repay principal and interest. A DSCR below 1.20x is a deal-breaker for most local banks.
2. The quality of collateral
Cameroonian banks require collateral covering 130% to 150% of the loan amount. The diagnosis inventories the assets that can be pledged and identifies any coverage gaps.
3. The clarity of the business model
The credit committee must understand in under ten minutes how the company makes money, what its break-even point is, and why its customers will pay. A vague business model, with unsubstantiated revenue assumptions, is the number-one cause of rejection at this stage.
4. Governance and the team
Banks finance people as much as projects. The sector experience of the management team, the quality of the company's bylaws, tax and social compliance, and bookkeeping kept by a certified professional are strong signals of seriousness.
5. Regulatory compliance
Operating in a regulated sector (transport, healthcare, agri-food, education) without the required licences is grounds for automatic rejection. The diagnosis verifies the OHADA compliance of the bylaws, tax standing (DGI tax-clearance certificate), social standing (CNPS), and the necessary sector-specific licences.
What a financeability diagnosis delivers in concrete terms
Our financeability diagnosis service delivers, within 10 business days, a complete report with a financeability rating (A to D), a list of recommendations prioritised by criticality and resolution time, and a roadmap to financial close. This diagnosis is the first intelligent investment a project owner can make before committing to months of dealings with banks.